Question

What is the difference between Permanent Funds and Private Purpose Trust Funds?

The General Fund is always considered to be a major fund. When are other governmental funds considered major?

What is a bond refunding and why do governments refund bonds?

What is the difference between a current refunding and advance refunding?

cite source

Answer 1

Answer:

1)Permanent assets and private reason trust reserves contrast in reason and accounting treatment.

The reason for private reason trust support is to be produce pay to profit people, private associations or different governments while the motivation behind a permanent assets is to give salary to profit the administration and its natives.

Private reason reserves are represented on the collection premise the monetary asset estimation focus.whereas permanent assets are accounted utilizing the adjusted accumulation premise and the current financial resources management focus.

2) Other governments reserves are viewed as real when both the accompanying exist.

Add up to resources liabilities, incomes or consumption of that subsidize establish 10% of either the legislature or enterprise category.

Add up to resources, liabilities incomes or consumptions of that reserves 5% of the aggregate of the administration and enterprise category.

3) A security discounting is issuing new obligation to replace the old obligation . A case of why governments discount securities are to get better loan costs or to change the development of the obligation and so on.

4)Current refunding is when new debit is issued and the process are used to call the existing debt.
Advance refunding I when the procedure are set in a Scopes account pending the call or development rate of the current obligation.